Question: A $ 5 0 4 , 0 0 0 bond issue sold for $ 4 8 7 , 0 0 0 . Therefore, the bonds

A $504,000 bond issue sold for $487,000. Therefore, the bonds sold:
Multiple Choice
at a discount because the stated interest rate was higher than the market rate.
at a discount because the market interest rate was higher than the stated rate.
at a premium because the stated interest rate was higher than the market rate.
for the $504,000 face amount less $17,000 of accrued interest.

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